Showing the deposit and the bank making a loan

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Reference no: EM131743515

Money Supply

1. You deposit $2,000 into your checking account at ABC bank. The Reserve Ratio is 20%.

A) Make a T-account showing the deposit and the bank making a loan

B) Using the money multiplier, how much will the money supply increase because of the $2,000 deposit?

Reference no: EM131743515

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